Tech Stocks Plummet Amid Concerns Over Personal Computing Market and Demand

Shares of major tech companies, including Microsoft, Intel, and others, took a hit on Monday amid concerns over the future of the personal computing market and slack demand. Microsoft shares fell to a two-year low, while Intel's stock dropped 12 percent as investors worried about the impact of added production capacity on demand. The downturn in tech stocks was part of a broader market decline, with analysts pointing to lowered earnings expectations.

Key Takeaways:

• Microsoft shares plummeted to a two-year low, closing at $50.38, down $3.38, a 6.3 percent drop.
• Intel's stock fell 12 percent, to $35.96, with 90.4 million shares traded.
• The decline in tech stocks was driven by concerns over the future of the personal computing market and slack demand.
• Analysts surveyed by First Call/Thomson Financial predict Microsoft's earnings to be 41 cents per share, up 3 cents from a year ago.
• The success of Microsoft's Windows 2000 operating system and initial gains from the Windows Millennium Edition will be closely watched by analysts.
• Monsanto's return to the stock market as a separate company will be a key indicator of investor sentiment on genetically engineered food.

Statistics:

• Microsoft shares fell to a low of $49.56 per share.
• Intel's stock has fallen 53 percent since its record high in August, wiping out $269.4 billion in market value.
• Intel's current market value is $239.6 billion.
• Demand for Intel's chips has not recovered as investors had hoped, according to Salomon Smith Barney Inc. analyst Jonathan Joseph.
• Interest rates on short-term Treasury securities were mixed in Monday's auction, with the three-month bill selling at a discount rate of 6.080 percent, and the six-month bill sold at a rate of 5.990 percent.

Sources:

• The Associated Press
• Bloomberg News
• The Associated Press
• Bloomberg News
• First Call/Thomson Financial
• Salomon Smith Barney Inc.